Understanding the Market | CGN MINING fell over 4% before noon as regulators rejected Amazon's nuclear power agreement; the natural uranium trading market is about to enter the off-season

Zhitong
2024.11.05 03:58
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CGN MINING fell over 4% in the morning, and as of the time of publication, it was down 2.7%, trading at HKD 1.8, with a transaction volume of HKD 161 million. On the news front, the U.S. Federal Energy Regulatory Commission (FERC) voted last week to reject Talen Energy's plan to increase power supply for Amazon data centers, leading to a significant drop in the stock prices of the company and other U.S. nuclear power companies on Monday. Zhongtai International previously stated that U.S. companies generally support long-term demand and prices for uranium due to the demand for nuclear power. Haitong International pointed out that short-term improvements on the supply side are putting downward pressure on spot prices, but there are still uncertainties regarding the recovery of the supply side (increased sulfuric acid costs and mining tax rates are adding pressure to the original mining announcements, and developments in Niger may continue to affect production at mines in Niger). Following this, with the potential onset of a rate-cutting cycle by the Federal Reserve, the natural uranium market is gaining more attention, which may drive spot demand to gradually recover, and spot prices may trend upward with fluctuations. In late November, the number of public holidays in Europe and the U.S. will increase, leading the natural uranium trading market into the off-season, with prices expected to stabilize with fluctuations

According to the Zhitong Finance APP, CGN Mining (01164) fell over 4% in the morning session, and as of the time of writing, it was down 2.7%, trading at HKD 1.8, with a transaction volume of HKD 161 million.

In terms of news, the U.S. Federal Energy Regulatory Commission (FERC) voted last week to reject Talen Energy's plan to increase power supply for Amazon data centers, leading to a significant drop in the stock prices of the company and other U.S. nuclear power companies on Monday. Zhongtai International previously stated that U.S. companies' demand for nuclear power generally supports long-term demand and prices for uranium.

Haitong International pointed out that short-term improvements on the supply side have put downward pressure on spot prices, but there are still uncertainties regarding the recovery of the supply side (increased sulfuric acid costs and mining tax rates have raised mining pressure, and developments in Niger may continue to affect production at mines in Niger). Following the potential interest rate cut cycle that the Federal Reserve may initiate, the natural uranium market is gaining more attention, which may drive spot demand to gradually recover, and spot prices may fluctuate upward. In late November, with an increase in public holidays in Europe and the U.S., the natural uranium trading market is entering the off-season, and prices are expected to stabilize with fluctuations

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